Our forecast for UK hotels in 2019 anticipates slower growth reflecting uncertainty, softer economic and demand trends, and the impact of high levels of new hotel room additions, particularly in London but also in other UK cities.

While the weak pound continues to support inbound leisure travel, protracted negotiations around Brexit are not helping business travel.

London hotels remain at the top of their game

We forecast a marginal occupancy gain in 2018 of 0.1% and a 0.5% fall in 2019 as new supply additions continues to bite and political uncertainty dents corporate demand. But London continues to operate at a globally high level.

We predict Average Daily Rate (ADR) will manage 0.2% growth this year and 0.8% in 2019. This will drive a 0.3% gain in revenue per available room (RevPAR) this year with an additional 0.3% growth in 2019, keeping RevPAR very high at £122 in 2019.

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